Current Tax Incentive Program Ends in December 2010 – Thousands of Phoenix Area Jobs at Risk

PRLog - Nov. 25, 2009 - MESA, Ariz. -- MESA, Ariz. – With the Arizona unemployment rate at 9.3 percent in October, creating new jobs for Phoenix area residents should be at the top of the priority list for every member of the state legislature. However, the Arizona State Legislature is at a crossroads to create new jobs for Arizonans by simply choosing to extend The Motion Picture Production Tax Incentive Program set to expire in December 2010. Worst of all, at risk are potentially as many as 2,750 local well-paying jobs from the development of a stage and production studio in Mesa.

Gateway Studios Chief Executive Officer Vince Stark has announced plans to build a sound stage and production studio in Mesa with ground breaking set for next August. Construction is estimated to take two years for Phase 1 and two years for Phase 2. This construction could provide 250 direct construction jobs, 300-500 indirect jobs and up to 2000 induced jobs (not directly associated with the studio).

“Unfortunately, if our state legislature does not extend this tax credit, Mr. Stark might have to alter his plans as the industry can not be competitive without the extension,” said Bob Green, Candidate for Arizona State Legislature. “The short-sighted thinking and slow reacting legislature needs to understand that tax credits in this case provides jobs and allows Arizona to have an infrastructure to sustain an industry that can provide billions of dollars in revenue over several years. An example is what has occurred in New Mexico.”

According to Green, film projects in New Mexico have expanded from two in 2001 to 31 in 2008, with a fiscal spending impact of $344 million in 2008.

“This is an economic benefit that Arizona could have had, and can still create, with the proper tax policies,” Green said. “Ultimately extending the film industry tax credit can be very financially lucrative for Mesa, and Arizona, as a whole. I urge our legislature, which is in a special budget session now, to act quickly and ensure that we all benefit from attracting this important job-creating business to our state.”

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